Newest windstorm bill more 'coast friendly' 

Bill under study not final version

Punitive issues, caps on coverage are out

Thursday, May 21 --

A special session was averted and punitive issues such as caps on coverage as well as restrictions on selling real estate that were included in prior bills are now no longer being considered as part of windstorm insurance legislation.

That’s the word from State Rep. Todd Hunter, D-Corpus Christi, after what he called a “high level” meeting yesterday, Wednesday, May 20, that included Gov. Rick Perry, Lt. Gov. David Dewhurst, senators and state representatives, including Hunter.

Perry advised the group that he would call a special session on windstorm issues if differences over windstorm insurance legislation could not be resolved by the time the session ends on June 1.

The meeting resulted in an agreement that “the Texas House of Representatives' Insurance Committee would unblock the currently held Senate bill on windstorm, “according to a news release from Hunter.

“The House Insurance Committee met and substituted a new bill that was much more coastal friendly.  That substituted version will be sent to the House floor for a vote and then to a conference committee as soon as possible,” Hunter said.

“My goal is to make sure that whatever bill passes involves proper insurance coverage and reasonable, effective and affordable rates for the Texas coastline.

 “The current bill that was passed out of the House Committee is much better than previously filed bills.  Past bills such as H.B. 911, H.B. 4733 and S.B. 14 were very high on insurance rates on the coastline and did not provide affordable coverage. 

 “The new House version of Senate Bill 14 voted out of the House Insurance Committee is much better on insurance rates and insurance coverage for the coastline.  However, it is not perfect and many modifications need to be made to the substituted bill.  Our goal is to get this bill to a conference committee that will work out the real proposal on which legislators will vote,” Hunter said.

He emphasized that the bill being studied now will not be the final legislation.

“Punitive issues such as caps on coverage as well as restrictions on selling real estate in prior bills are now no longer being discussed or considered.  That in itself is a victory,” Hunter said.

“My goal is to make sure that whatever bill passes involves proper insurance coverage and reasonable, effective and affordable rates for the Texas coastline,” Hunter said.

Hurricanes Ike (2008), Katrina and Rita (2005) depleted funds in the Texas Catastrophic Windstorm Insurance pool, the insuror of last resort for coastal properties. Finding a means of replenishing those funds is the challenge faced by the Legislature.

House Bill 4733, introduced by Rep. John Smithee, R-Amarillo, was considered punitive for coastal residents who, if the bill was approved, would bear the entire cost of restoring funds to the windstorm pool.

SB 14, introduced by Sen. Troy Fraser, R-Horseshoe Bay, was the Senate response to HB 4733.